Today, institutional capital inflows are primarily focused on two channels: Inflows into US spot ETFs and purchases through digital asset treasuries (DATs). The latter - such as Strategy - pursue the goal of accumulating as many $BTC (+0.18%) possible without the intention of selling. As long as they are not forced to sell positions, these holdings are effectively considered to be withdrawn from the market.
With ETFs, inflows and outflows are basically possible in both directions. In the current environment of increasing adoption, however, the buy side clearly dominates. More and more financial advisors are only now beginning to offer their clients corresponding products. At the same time, large financial institutions continue to launch new #bitcoin-ETFs to the market, most recently Morgan Stanley.
The development shows: If you add up the demand from ETFs and DATs, it already significantly exceeds the amount of new $BTC (+0.18%)that come onto the market every day through mining. In addition, every four years or so, halving halves the number of new $BTC (+0.18%).
ETFs and DATs together currently only account for around eleven percent of the total $BTC (+0.18%)-supply. If this trend continues, an increasing imbalance between supply and demand seems likely - with the corresponding potential for prices to rise significantly.
You can invest in Bitcoin via the following vehicle: $BITC (-0.22%)
